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NEC Wins Contract for Russia- Japan Cable Network

NEC Corporation (NEC) (NASDAQ: NIPNY) today announced that it has signed a contract with Rostelecom, the largest long distance telecom operator in Russia, and KDDI Corporation in Japan for supply of a Russia- Japan cable system.

The contract is for construction of an optical submarine cable system crossing the Japan Sea to connect Nakhodka in Russia to Naoetsu in Japan. The total length of the new submarine cable will be approximately 1,800km (900km x 2 routes) with transmission capacity of 640 Giga bits per second (Gbps). The system adopts 10Gbps DWDM (Dense Wavelength Division Multiplexing) technology. NEC will provide a comprehensive set of equipment and services including system design, installation, commissioning and integration on a full turnkey basis.

International telecommunication connection between Russia and Japan currently relies on the existing Russia-Japan-Korea cable system (560Mbps in 1995) and satellite system. However, in order to improve international network services, Rostelecom and KDDI have decided to construct a new submarine cable. Upon completion, it will provide 1024 times larger capacity and it will also play an important role as a part of the Transit Europe-Asia (TEA) initiative linking Europe to Asia through the Russian national network. This is the shortest route between two regions, as opposed to passing through the Pacific/Atlantic Oceans or the South East Asia/Middle East route. Thus the speed and quality of international telecommunication will be dramatically enhanced.

"We are honoured to take part in the construction of the Russia-Japan Cable System. This contract is certainly a reflection of our competence in comprehensive project implementation capability and highly advanced DWDM technologies for broadband telecommunication, which have been proven by our past submarine cable projects as well as terrestrial projects in Russia. NEC will continue to dedicate its strength to the development of telecommunication infrastructure in these and other countries across the globe." said Mr. Akihito Ohtake, Senior Vice President at NEC Corporation.

NEC is a world leading submarine and terrestrial system supplier and integrator. In particular, NEC is a leading submarine cable systems supplier in Asia. Since 2005, NEC has been awarded a number of new construction contracts of submarine cable systems in Indonesia, Malaysia, India, Sri Lanka, Maldives, China and Japan as well as capacity upgrade contracts for existing submarine cable systems in Japan, Korea, Taiwan, Hong Kong, China, Philippines, Malaysia and Singapore. In addition, NEC has been involved in a number of telecommunications infrastructure projects in Russia through a local Russian company, CSCJ NEC Infocommunications,


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